ALBANY—The New York Power Authority (NYPA) today announced
progress on initial plans for the installation of a new power line aimed at
improving electrical service in the Tri-Lakes Region of Lake Placid, Saranac
Lake, Tupper Lake and the surrounding communities.

Under an agreement, unveiled last November by Governor
George E. Pataki, the Villages of Lake Placid and Tupper Lake, NYPA and
Niagara Mohawk, a National Grid Company, are working together to improve the
regional electric system and reliability problems caused by winter weather
and increased electric use. While NYPA will obtain the permits for the
line, Niagara Mohawk will build it. It is expected the new 46 kV (kilovolt)
power line will be in service by 2008, at an estimated cost of $29 million.

Within the next few months, NYPA and Niagara Mohawk plan to
submit a preferred and alternate route of where to locate the power line in
applications to the Adirondack Park Agency, the New York Department of
Environmental Conservation and the U.S. Army Corps of Engineers. These
routes will take into consideration information gathered from public
comments, regulatory agency consultations, and environmental and engineering
studies.

From near the Stark Reservoir in Parishville traveling south
along State Route 56 until reaching forest preserve land. It would then
travel west, and circle south around that land, before heading east to again
follow State Route 56 south to Sevey Corners in Colton. It then travels
east along State Route 3 to connect with an existing substation
in Piercefield. An existing supply line from the Piercefield substation
would bring the power to the Tupper Lake substation.

From Newton Falls in Clifton heading east, through Cook
Corners east to State Route 3 to Sevey Corners in Colton. It would then
continue east along State Route 3 to connect with an existing substation in
Piercefield. An existing supply line from the Piercefield substation would
bring the power to the Tupper Lake substation.

Ultimately one route will be selected and one line built,
but the State Environmental Quality Review Act (SEQRA) requires that NYPA
evaluate more than one route.

NYPA is currently seeking public input on the possible
study route corridors. To reach a wide public audience and encourage input,
a map of the study routes will soon be made available at town
and village municipal buildings. Information will be available shortly on
the web at
www.nypa.gov (at the Home Page, click on the Tri-Lakes Electric
Reliability Project link) which will also give the public the ability to
submit questions and comments via email.

NYPA will also hold a meeting, with day and evening
sessions, in June to give the public an opportunity to identify issues of
importance concerning the project. Public comments will also assist in the
development of the Environmental Impact Statement, which is being prepared
under SEQRA. The meeting date and location will be announced soon.

Property owners along the study routes are currently being
contacted to seek permission to enter their property to gather information
important to the development of the study routes. Federal, state and
municipal officials are also being briefed on the study routes.

NYPA has also begun energy efficiency audits to encourage
conservation through the use of energy efficient methods and products at a
targeted sampling of municipal offices, businesses and residences in Lake
Placid and Tupper Lake. NYPA supplies the electricity used by the municipal
electric systems serving Lake Placid and Tupper Lake.

The audits will gather information on these facilities and
their typical energy use to help identify a broader range of customers
well-suited to participate in energy efficiency programs. These audits will
also serve as the basis for developing cost-effective, energy-saving
recommendations and measures for these municipal systems customers to
implement. Recommendations are expected to be produced by the end of June.

Statewide, NYPA has completed 1,400 energy-efficiency
projects involving more than 2,200 government office buildings, public
housing, schools, colleges and universities. These projects have resulted
in $89 million in annual energy cost savings, 845,365 megawatt-hours of
electricity conserved each year and reduced annual emission of 658,958 tons
of greenhouse gases. The energy-efficiency measures include high-efficiency
lighting, motors, motor drives, heating, ventilating and air conditioning,
boilers and building shell measures and also the use of clean energy
technologies such as fuel cells, microturbines and solar energy
projects.

NYPA plans to fund a feasibility study to explore the
possibility of a biomass generating facility at Tupper Lake. NYPA will
address the feasibility of generating electricity by using wood from a
working Adirondack forest. If feasible, this sustainable energy source
will help protect North Country jobs, improve the environment and keep our
energy dollars at home.